All Forum Posts by: Bettina F.

Years ago we (1980s) did this, but now we do not bother.  Now we just have late fees, and issue a POQ on the 6th business day of the month.  Tenants get one POQ notice.  If they require more than that, they obviously cannot afford our apartments and are issued a  30 day notice to vacate.  We are into "low hassle" LLing, and discuss this with applicants prior to move in.    If the tenants are having short term financial problems, they can borrow from family or friends, or from the local churches or social service agencies.  I don't chase rent and I don't work with tenants.

I do send monthly rental invoices from Quickbooks.  I modified the default QB invoice to read "Rent Due" and send on the 25th of every month for the next month's rent.  Easy, peasy -- especially for a CPA who probably already knows QB.  

BTW, I am very comfortable asking tenants to go to the local churches to ask for rent assistance.  I give every month to my church, and my church offers rental assistance, so why don't I do it directly?  Because forcing the tenant to go request aid makes them get off their butts to help themselves.  Don't make it EASY for the tenants to get behind.  Letting tenants slide on rent is not good for you -- or good for the tenants. 

Developers are offering 0 down VA loans in my area. These little 3/2s will make good rentals when the marriage breaks ups and the owners default in a couple of years. I am keeping my eyes open, ready to pounce.

All are welcome to apply.   That being said,  I am very open about my rental criteria.  I charge an application fee, and personally do not want people applying to rent my apartments unless they have a reasonable chance of qualifying.    I let people know upfront what is the required minimum monthly income, what is the total required move-in money (I pro-rate the second month), length of time on job,  no accounts n collections   etc.   I will broadly hint that they do not qualify, and it would be a  waste of time and money.

Sometimes you will get someone who is just too naive to realize that they simply cannot afford my apartments -- I hate taking their money to run a credit/criminal/eviction when you know they will not qualify, but I don't want to violate Fair Housing.   

My apartments were too far away from the hospitals to make it viable, but when I looked into it I was told to contact the residency coordinator at the medical school.  You should expect and be ready for large turn overs each June for the July 1st start dates.

Neither. I prefer employed blue collar working people with good credit in my class B apartments. They care about their credit scores, are easy to manage, and take good care of the buildings. Low drama. My last two vacancies have been filled with employed divorced moms with part time custody. Great tenants. Have have heard that class A tenants expect absolute perfection in rentals and can be PITAs. No thanks!

Before you house hack, get a PT job managing apartments in exhange for rent.   Do this in addition to your current jobs.  You will be able to increase your monthly savings and get paid to learn property management and real estate.

. I felt like I was in way over my head- fortunately I had a mentor to re-assure me.....

The only thing I would add by way of advice is "paper is your friend." I papered the crap out of those tenants- Each and every interaction was memorialized in a notice to cease or a notice to quit. Every follow-up text, every phone call was added to a "revised" Notice. If I was going to file for eviction it would have been well documented. I removed every one without stepping into court. One guy yelled at my contractor- I drafted and affidavit the next day that the contractor signed- detailing the "verbal harassment," and attached it to a notice to quit.

And while I was initially shaken by being challenged "you can't have me remove that non running car- the last landlord never could." Or "you can't make this building non-smoking!" I never let it show. 

Yes! Document everything and be 100% legal. This shows the tenant that 1) you know your stuff. 2) you will go to war if need be. I have also never had to go to court with an eviction. I believe one tenant went to legal aid and was told that everything I was doing was legal, so she ended up leaving without a fight. I know one tenant attempted to turn me into Fair Housing because I got a phone call on my dedicated fax line. This was an unpublished number that was only listed with our Secretary of State when we registered our LLC -- we did not even have this number on our business cards. ("No, we do not have any vacancies at this time. We are doing a major rehab on one unit, but I don't know when it will be available. It will be listed on Craig's list when available. All are welcome to apply!") This is why LLs must know about Fair Housing -- testers will call when you least expect it.

Never let them see you sweat.  Tenants will sense your uncertainty and use it to their advantage.  Project an image of experience and competence no matter what.   That is why you need your comebacks.  If you are caught unaware, learn to say you need to "check with your legal team" or "ask the partners".  You can't work with tenants because in your experience, once tenants get behind in rent, they seldom catch up -- this is true even if "your experience" is reading Bigger Pockets!

P.S.  -- Post your story in Success Stories.  It will help a lot of newbies!

Yes to paint and light fixtures. They are both relatively cheap and fast fixes with a lot of bang for the buck.  Yes, stick with a neutral color.  Sherwin Williams Repose Gray is popular. Only replace the carpet if it is worn, a horrid color, cannot be cleaned or stinks.  (You will replace carpet on subsequent turnovers.)  Leave the blue bathtub.  Hang a curved shower rod, and a coordinating shower curtain so the tub doesn't stick out like a sore thumb.

Happy renting!

In this situation, I would be afraid that I was being scammed by the previous owner.  Let's see -- sell a property without the proper license,  put your GF in the house, who immediately stops paying rent, does the free ride for as long as she can, and then gets triple damages!  Split the triple damages and each walks away with $45K.

BTW, the cell phone that got cut off for non-payment was a burner phone.  She has a nicer cell phone than you do.  They all do.  Her manicure is nicer than your wife's manicure.

I am a very suspicious person.  Get a lawyer.  Review your title insurance policy, and your contract with your realtor.  You may have some recourse there.

Best way to learn about business is to start one  -- start with a low capital service business like dog walking or house sitting.  You will be forced to learn about marketing, bookkeeping, collections, customer service, and (unfortunately) government regulation.  Take advantage of the fact that you are a minor and people want to help out a gung-ho kid.  Do they have Junior Achievement in your high school?  It is a club sponsored by the Chamber of Commerce and they help young people start their own business.   If they don't have a chapter in your school, can you join a chapter at another school?  Also, can you do (free) dual credit high school/community college courses?  Ask your HS counselor.

I am a firm believer that you should have an educational goal before you attend college.  For post high school, check out the Praxis apprenticeship programs @ www.discoverpraxis.com.   Should help you focus on your goals, or even if you decide you need college.

Don't forget your public library.

Udemy.com has awesome $10 courses on a wide variety of subjects.  One of my favorite podcasts is Side Hustle School.  Free on iTunes, and lots of great inspiration.